The vast scope of opportunities for company formation in India is certainly a challenging task but also very rewarding. However, a company must be truly ethical and comply with its ideals, principles, and values.
Company formation is the framework of establishing a business. The Company Registration Process is varies according to the type of business structure.
Company incorporation provides different legal rights and also creates a different status in the eyes of the law. This means that the company is a separate legal entity from its owner.
Types of Company Formation in India
-Private Limited Company
Private limited company registration requires necessary approvals from the appropriate government authorities. Starting a company in India is complex and requires careful planning considering company objectives, legal requirements, and taxation, along with help from experts.
Private limited company provides appropriate legal status to the company and allows it to conduct business in a secure and transparent manner. It also helps the company protect its assets. Minimum 2 members and maximum 200 members are required for registration.
-Public Limited Company
Public Limited Company Registration is the process of registering a company with the relevant government authorities to conduct legal operations and business in the country.
-Limited Liability Partnership
An LLP company protects the partners from limited liability as each partner is liable only for his own actions and not for the actions of other partners. A minimum of two and a maximum of an unlimited number of people own and operate the firm.
Partners should also follow the laws properly, as well as draw up a partnership agreement for protection.
LLP registration offers the benefit of sharing costs and resources as well as having multiple people to help manage the business.
-One Person Company
One Person Company (OPC) is a type of business entity in which a single person owns and operates a company. This type of business structure provides limited liability protection to the individual owner because the owner is not liable for the actions of the company.
Company Formation as an OPC Company is a great option for entrepreneurs who want to start their own business but do not want to take on the responsibility of managing a large organization.
4 Stages of Company Formation in India
1. Promotion stage:
Start the promotion phase by converting the business plan into implementation and start working on the idea. You will need the help of professionals and legal experts to set up a company. This ultimately helps you improve your networking.
The promotion phase involves knowing what’s best for your business. This is the time to explore all possibilities. The help and guidance of promoters are very important in the initial stage of company formation.
2. Registration stage:
Company incorporation involves the process of approval of a unique and suitable name for your company on the website of the Ministry of Corporate Affairs. The fee of Rs. 1000/- is required.
Once the name is approved, fill in all other required e-Forms and attach mandatory documents. The process is completed within 20 days of name approval.
Draft the MOA and AOA and get them checked and approved by the Registrar of Companies. Additionally, pay the applicable stamp duty and registration fees.
3. Incorporation stage:
The ROC will issue the Certificate of Incorporation if satisfied with the documents submitted. If any error is found the authority will suggest you to correct it.
This registration confirms the inclusion of the company in the list of registered companies. The date listed by the ROC in the confirmation letter will be the company’s incorporation date.
4. Commencement of business:
An incorporation certificate is very important for the formation of a company in India. It is a confirmation by the Registrar of Companies regarding the incorporation of a company. Company formation in India is a great way to run and expand your business.
Conclusion:
In conclusion, registering a business can be a complicated process. It is important to understand the various steps and rules involved to ensure a successful company formation. JustStart can assist and guide you to make the process easier and more efficient. You can start your business in no time with the right advice.
